ExpertMedium2 marksMultiple Choice
ACCA · Question 01 · Syllabus A: Business organisation and its external environment
GreenCanopy, an international environmental NGO, is currently analyzing its external environment. The management team is particularly concerned about upcoming international treaties that will mandate strict reporting on carbon emissions, as well as a noticeable shift in public attitudes towards sustainable living.
Under which two PESTEL categories do these factors primarily fall?
GreenCanopy, an international environmental NGO, is currently analyzing its external environment. The management team is particularly concerned about upcoming international treaties that will mandate strict reporting on carbon emissions, as well as a noticeable shift in public attitudes towards sustainable living.
Under which two PESTEL categories do these factors primarily fall?
Answer options:
A.
Political and Economic
B.
Legal and Social
C.
Environmental and Technological
D.
Political and Technological
How to approach this question
Identify the nature of the two factors: a mandate/treaty is a rule of law (Legal), and public attitudes relate to societal trends (Social).
Full Answer
B.Legal and Social✓ Correct
In the PESTEL framework, new laws, regulations, and mandatory treaties fall under Legal factors. Changes in consumer behavior, demographics, and public attitudes fall under Social factors.
Common mistakes
Students often confuse Environmental factors (physical ecology) with Legal factors (laws about the environment).
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